Warren Buffet once said ‘If you don’t find a way to make money while you sleep, you will work until you die.” Indeed, you become financially free when your passive income exceeds your expenses; only then will you be to truly able to sit back and enjoy life’s many offerings while having a generous amount of passive cashflow in the background. Cryptocurrency presents itself as a very viable means of investment and inflation hedge; however with the myriad variety of investment platforms, including scams that have been nicely packaged and disguised to prey upon the unwary, how do we make a wise and informed investment decision?

Introducing Cake DeFi, a reliable investment company based in Singapore, which has been reliably generating passive cashflow for me for the past 2 years. Cake DeFi’s focus is on a simple user experience, in addition to generating high returns for its users. In this article, I would like to briefly share on Cake DeFi’s many offerings and its potential yields.

Fiat services: Buy bitcoin, ethereum, or DFI (defichain) directly with euro/ dollar

Users can easily purchase cryptocurrency on the platform itself via SEPA or credit card, which is handled by BANXA and Transak. Now that you have some cryptocurrency, like BTC, ETH or DFI in your account, you can start to make use of the many exciting offerings by Cake DeFi as below.

Staking

There are 2 forms of consensus building on a blockchain, namely Proof-of-Work (PoW) and Proof-of-Stake (PoS). A Proof-of-Stake blockchain is a more efficient method of validating the transactions, as it doesn’t require installing expensive computer hardware.

Staking is a way of earning handsome interests by holding onto your crypto assets in a staking pool, which acts similarly to your savings account, but at a much higher interest rate of up to 100% APY! Staking in Cake DeFi can be done with DFI, the native coin of DeFiChain; and DASH, albeit at a lower rate of 5%. The staked crypto assets are put to work by the blockchain, which in turn offer rewards. This is done via a process called “Consensus Mechanism” commonly referred to as ‘Proof of Stake’. Through this process, the verification of all transactions is ensured. As such, it serves as collateral while helping blockchain networks to leverage the ‘Proof-of-Stake’ algorithm. The new tokens generated through this process are distributed as rewards for validating each block.

With Staking, there is no minimum term. You can participate at any time, and can even take your coins out of the Staking service when you choose. Your rewards will be credited directly twice a day, depending on the coin.

Liquidity Mining

Liquidity mining is a key element of most DeFi (Decentralized Finance) projects. During this process, participants contribute their cryptocurrency assets to a liquidity pool, facilitating crypto trading in pairs and providing liquidity for users who want to do a swap of cryptocurrencies on the decentralized exchange, eg BTC/DFI. That means, you first need the same amount of both coins, which is bitcoin and DFI in this example. These aren’t used for borrowing or lending purposes and can be withdrawn at any time (no lock-up period). As it is decentralized, the price finding mechanism hinges solely on supply and demand. Once the trade or crypto swapping is complete, the transaction fee and the block rewards are distributed among all liquidity providers. In DeFiChain’s case the rewards are paid out in the native coin DFI.

There are many liquidity pools available to participate in Cake DeFi

A new exciting addition to this list is decentralized assets such as TESLA, Apple and Google, which I have covered in detail in my article here.

Lending

Lending allows you to earn a passive income on your bitcoins, ether, USD Tether as well as USD Coin. Your capital and returns are fully guaranteed and risk-free, with possible bonuses if the spot price of the asset exceeds a certain amount. Each lending batch runs for 28 days, starting and ending on a Friday. Once you choose to participate, your BTC / ETH / USDT / USDC will be locked into options contracts for the next 4 weeks. After the 4-week period of the batch, you will have the option to automatically enter the next batch (to generate automatic compound interest), withdraw only your return, or withdraw your entire principal and your return back into your account.

Freezer

The Freezer is a loyalty programme that rewards users for committing funds to Cake DeFi for a certain period of time, ranging from 1 month up to 10years. It is available for funds allocated to the Staking & Liquidity Mining products.

The regular freezer gives you up to an 85% rebate on the fees Cake DeFi takes. The 5 year and 10 year DFI Staking on the other hand locks the funds on the DeFiChain blockchain itself, giving users up to 2x the regular staking rewards depending on the tenure, translating to an impressive APY of up to 100% for a 10 year staking period!

At A Glance

Final Thoughts

Cake DeFi is a trustable and reliable one-stop platform where you can manage all your financial assets and generate passive cashflow. Liquidity mining and staking both offer high yields and flexible tenures, allowing for liquidity of assets. By staking your cryptocurrency, you join the team of validators for a particular network. In return, you will be awarded tokens or incentives. Funds invested in lending services are fully guaranteed and risk-free, although at a lower yield, and locked in fixed monthly tenures. The freezer takes it to a whole new level by potentially doubling your earnings, by locking assets for tenures of up to 10 years!

Are you ready to embark on the journey of earning passive income?

Sign up today and earn a $30 bonus for new users, on your first deposit of $50 and more.

For a limited time, get an additional 8 DFI bonus (worth ~$20) on top of the current $30 signup bonus! (Signup bonus upsized if you register by UTC 05:00 on 11th February, 2022; following which signup rewards are $30)

Alternatively, scan the following QR code to sign up.

Check out my article here for a detailed tutorial on how to invest with Cake DeFi!

This article was originally published by me on medium.

As always this is not financial advice! But just some cryptocurrency investment platforms I am currently using and have found worthy of sharing with. Do your own research before investing and never deposit money you cannot afford to lose.
Feel free to ask me any questions below.

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